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Advocate_Mom52

Ques: Employer Conditions b4 receiving Workman's Comp settlement

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My grandson was injured on the job and has been offered a Workman's Comp. settlement.  The company he works for is self-insured.  He has been asked to sign a document agreeing to leave the company as condition of receiving the settlement. Is this legal?  (The atty has offered that the insurance company will drop the employer if he doesn't sign.)  Would that qualify as a voluntary quit and make him ineligible to collect unemployment?

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Uhm, if the employer is "self-insured" the reference to an insurance company doesn't make a lot of sense.

Your grandson would ask his attorney whether the unnamed state has a problem with such a condition.

 

"Would that qualify as a voluntary quit and make him ineligible to collect unemployment?"

That's a question for the state unemployment folks (and his attorney), but I'd rather the document were worded such that he agrees he's terminated as of X date.  I shouldn't think he'd be ineligible for unemployment benefits when it isn't a voluntary quit as such.

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This varies by state. In some states, he would be barred from receiving UC as he chose to leave voluntarily in exchange for money. These types of agreements are very common when settling a claim.

 

You must have gotten some sort of miscommunication regarding the IC dropping the employer. What you are suggesting doesn't make sense so I would not let that enter into the analysis. Your grandson needs to talk to his attorney to make sure the agreement is in his best interest as that is all that matters.

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